Sinn Féin legislation would require insurers to report savings passed onto customers as a result of Personal Injuries Guidelines - Pearse Doherty TD
Sinn Féin spokesperson on Finance Pearse Doherty TD has today published legislation that would require the insurance industry to provide information to the Central Bank outlining how the cost of claims have reduced as a result of the new Personal Injuries Guidelines, and how they have passed those savings onto their customers, for each of the next four years.
The Judicial Council (Amendment) Bill 2021 would hold the industry to account and ensure transparency on how they have passed on savings to consumers as a result of the new guidelines. The Donegal TD introduce the bill in the Dáil tomorrow.
Teachta Doherty said:
“The personal injuries guidelines are to come into effect on Saturday April 24th and will significantly reduce the cost of claims for insurers.
“Sinn Féin supported these guidelines solely on the grounds that they will reduce the cost of insurance for consumers.
“Since the new guidelines were published, the insurance industry has tried to row back on commitments to reduce insurance premiums, on spurious grounds using bogus arguments.
“The fact of the matter is that these new guidelines will reduce the level of personal injury awards significantly, in some cases by more than 60 percent.
“That will lead to significant savings for insurance companies that must be passed onto their customers. We cannot let them off the hook.
“My Judicial Council (Amendment) Bill would require the insurance industry to provide information to the Central Bank for each of the next four years outlining how the cost of claims have fallen as a result of these new guidelines, and if and how they have passed these savings onto their consumers in the form of reduced prices.
“The legislation requires the Central Bank to report this information to the Minister for Finance with a report brought before each House of the Oireachtas annually.
“That way, we can hold the insurance industry to account. There will be nowhere for them to hide, applying real pressure to the industry to reduce premiums in response to these new guidelines.
“If they don’t, this Bill will ensure that everyone, the Dáil and consumers, will know about it.
“This legislation will ensure that insurance providers are held to account, verifying that they pass on all savings to consumers that arise out of lower claim cost through the Personal Injuries Guidelines.
“Similar legislation came into effect in Britain following regulation that reduce the level of whiplash injury awards, where many insurers in this market also operate.
“I will be introducing this legislation in the Dáil tomorrow in the interests of consumers.”
You can find the Judicial Council (Amendment) Bill 2021 here.